Section 2. SALE OF REAL PROPERTIES.
- Pertinent portions of Section 4.106-3 of Revenue Regulations No. 16-2005, as amended is hereby further amended to read asfollows:"Section 4.106-3 Sale of Real Properties.
Sale of real properties heldprimarily for sale to customers or held for lease in the ordinary course of trade or business of the seller shall be subject to VAT.Sale of residential lot with gross selling price exceeding
,residential house and lot or other residential dwellings with gross sellingprice exceeding
, where the instrument of sale (whether theinstrument is nominated as a deed of absolute sale, deed of conditional saleor otherwise) is executed on or after Nov. 1, 2005, shall be subject to tenpercent (10%) output VAT, and starting Feb. 1, 2006, to twelve percent (12%)output VAT .x x x x x x x x x "
VAT EXEMPT TRANSACTIONS
. - Sections 4.109.-1 (B)(1) (e)(1), (p)(4), (q)and (v) of Revenue Regulations No. 16-2005, as amended, is hereby further amended toread as follows:"(e) Services subject to percentage tax under Title V of the Tax Code, asenumerated below:(1) Sale or lease of goods or properties or the performance of services of non-VAT-registered persons, other than the transactionsmentioned in paragraphs (A) to (U) of Sec. 109(1) of the Tax Code, thegross annual sales and/or receipts of which does not exceed theamount of
One Million Nine Hundred Nineteen Thousand FiveHundred Pesos (P1,919,500.00)
That every three (3) yearsthereafter, the amount herein stated shall be adjusted to its presentvalue using the Consumer Price Index, as published by the NationalStatistics Office (NSO) (Sec. 116 of the Tax Code)
Provided, further,that such adjustment shall be published through revenueregulations to be issued not later than March 31 of each year;
x x x x x x x x x(p) The following sales of real properties are exempt from VAT, namely:(4) Sale of residential lot valued at
One Million Nine HundredNineteen Thousand Five Hundred Pesos (P1,919,500.00)
and below,or house & lot and other residential dwellings valued at
Three MillionOne Hundred Ninety-Nine Thousand Two Hundred Pesos(P3,199,200.00)
and below where the instrument of sale/transfer/disposition was executed on or after July 1, 2005;
Provided, That every three (3) years thereafter, the amounts stated